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Opening A Tesco Branch In Vietnam

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Strategic plan for Tesco -Vietnam branch Current supermarket industry analysis

Competition in the supermarket industry is high with the British market being hypercompetitive.

In Vietnam, the competition landscape is not stiff with the only significant competitor being Big C. which has its origins in Thailand.

Big supermarkets like Wal-Mart present a one stop shopping experience for their customers hence influencing the contemporary industry.

The current supermarkets are also seen to get more into the private label trends which emphasizes on both discounted goods and quality as well.

The supermarkets are now focusing more on the specific goods that their clients need as opposed to the previous times when they stored thousands of good that only helped in confusing the client and wasting time for them.

The fresh produce section is of late a point that most customers consider when deciding which supermarket to shop from (Peterson H., 2014).

Competitor landscape

Though the Vietnam market is challenging, having performed well in the South East Asia, Tesco is certain to perform well in Vietnam too.

Tesco entered the South East Asia market late after supermarkets like Carrefour hence they have the competitive advantage over Tesco.

Tesco is the largest supermarket stores in Thailand and the second-largest operator of shopping centers hence understands the region more than the competitors.

Big C. has 27 stores in Vietnam and is the only competition though Tesco operates bigger than Big C. In neighboring Thailand.

Regulatory environment

The Vietnamese government encourages foreign direct investment (FDI).

There are lessened restrictions for the FDI to encourage the external investors to come in...

The challenges are now handled as they arise through the Enterprise Law.
Vietnam has recently signed several multilateral and bilateral trade agreements and is a member of bodies such as WTO, APEC and the latest being the Bilateral Trade Agreement with the U.S. (U.S. BTA) which makes it conducive for Tesco to operate (Central Institute of Economic Management, 2003).

Our plan

At the moment Tesco runs their supermarkets in 13 regions including the South East Asia.

The domestic market has presented numerous challenges from competitors hence the need to expand overseas to create a larger clientele base.

Bearing the vast experience that Tesco has in the South East Asia region, the supermarket will venture into Vietnam, introducing the same services that it provides in the surrounding the region under the Tesco brand.

The Tesco brand will be introduced into Vietnam through partnerships with the aim of having independent establishment in the years that follow.

The labor force will largely be sourced from the local population with only a few from the U.S. In order…

Sources used in this document:
References

Banco Santander, (2015). Vietnam: Business Environment. Retrieved April 24, 2015 from https://en.santandertrade.com/establish-overseas/vietnam/business-environment

Central Institute of Economic Management, (2003). The Legal Environment for Business Development Services in Vietnam. Retrieved April 24, 2015 from http://www.value-chains.org/dyn/bds/docs/285/GTZ-LegalEnvBDS-VN-Report.pdf

Encyclopedia Britannica, (2015). Hanoi: National Capital, Vietnam. Retrieved April 24, 2015 from http://www.britannica.com/EBchecked/topic/254479/Hanoi

Peterson H., (2014). Four Ways American Grocery Shopping is Changing Forever. Retrieved April 24, 2015 from http://www.businessinsider.com/trends-that-are-changing-grocery-stores-2014-4
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